What is the initial step in developing an Internal Factor Evaluation (IFE) Matrix?

The initial step in developing an Internal Factor Evaluation (IFE) Matrix is developing a full and narrow list of key internal factors. This step is critical because it involves identifying the strengths and weaknesses of the organization. A comprehensive list helps in analyzing the internal environment effectively, ensuring that every important aspect is considered in the evaluation process.

This foundational list will later be used to assign weights and scores, which will enable a more nuanced analysis of the organization's internal capabilities. If the list is not well-defined or comprehensive, the subsequent steps—like weighting and scoring—will also be flawed, leading to ineffective strategic decision-making.

Focusing on key internal factors sets the stage for a structured and thorough evaluation, allowing organizations to harness their strengths and address weaknesses accurately as part of their strategic planning.